Oregon Adventures purchased equipment for $80,000. The company sold the equipment three years later for $45,000. The expected service life of the equipment was seven years and its residual value was estimated to be $10,000. Oregon uses straight-line depreciation. Which of the following will be included in the journal entry used to record the sale of the equipment? Multiple Choice Credit Gain $5,000 Debit Loss $5,000 Credit Accumulated Depreciation $40,000 Credit Equipment $5,000

Oregon Adventures purchased equipment for $80,000. The company sold the equipment three years later for $45,000. The expected service life of the equipment was seven years and its residual value was estimated to be $10,000. Oregon uses straight-line depreciation. Which of the following will be included in the journal entry used to record the sale of the equipment? Multiple Choice Credit Gain $5,000 Debit Loss $5,000 Credit Accumulated Depreciation $40,000 Credit Equipment $5,000

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Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 26E

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